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Energy uncertainty index and European banks

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  • Boungou, Whelsy
  • Dufau, Bastien
  • Fawaz, Mahdi
  • Dash, Devi Prasad

Abstract

In this article, we investigate how energy uncertainties influence bank behavior. To achieve this purpose, we use a dataset of 4632 banks in the Eurozone between 2000 and 2022. We observe that, in response to growing energy uncertainties, banks reduce the cost of credit and increase their loan offers (especially corporate loans). This increase in loan supply leads to an increase in customer deposits. This in turn improves the bank's performance.

Suggested Citation

  • Boungou, Whelsy & Dufau, Bastien & Fawaz, Mahdi & Dash, Devi Prasad, 2025. "Energy uncertainty index and European banks," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524006062
    DOI: 10.1016/j.econlet.2024.112122
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy uncertainty index; Lending behavior; Bank performance;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • G2 - Financial Economics - - Financial Institutions and Services

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